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Current Mortgage Interest Rates of 08/26/2013

Investment

Current Mortgage Interest Rates of 08/26/2013

Current Mortgage Rates of 08-26-2013After experiencing the recent volatility of the market, mortgage rates are starting off the week lower than they were last week. Rates had spiked last week, reaching a two-year high. Although historically low, the rates surpassed the 4.5 percent range where they had hovered and struggled their way to an average around 4.75 percent.

Rates have been more volatile in anticipation of a definitive answer as to when the Federal Reserve will start the bond buying drawback. In order to keep the interest rates low, as part of the stimulus program, the Federal Reserve has been buying $85 billion worth of bonds each month. As the economy appears to improve, based on economic data and reports, the tapering of the program will begin.

As of now, many experts believe tapering could begin as soon as Sept. 18 and the program would be completely phased out by sometime next year. An official announcement from the Federal Reserve is expected on Sept. 18 when they release minutes from the August meeting.

Average rates from some of the top lenders are as follows:

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Wells Fargo

Wells Fargo’s conforming and 30-year fixed rate loans have an interest rate 4.625 percent and an APR of 4.799 percent. Their rate for 30-year fixed FHA is 4.375 percent for the interest rate and 5.893 percent APR. The standard 15-year fixed rate is 3.625 percent with an APR of 3.921 percent while the rate for the 5-year ARM FHA is 3.625 percent with an APR of 4.074 percent.

Citibank

Citibank’s rates have the 30-year fixed loan at 4.75 percent with .125 points for an annual APR of 4.847 percent. The 15-year fixed loan has a rate of 3.875 percent with .250 percent points taking the APR to 4.058 percent.

Bank of America

Bank of America has a 30-year fixed rate loan at 4.625 percent with an APR of 4.731 percent. The 5/1 ARM has a rate of 4.375 percent with an APR of 3.480 percent.

US Bank

The 30-year fixed rate at US Bank is 4.5 percent while the Jumbo 30-year also has a 4.5 percent rate. The FHA 15-year note rate is at 3.750 percent. For a 5-year ARM which may increase after consummation, the rate is 2.625 percent.

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Other Fees

The closing costs, loan origination fees, and other expenses also vary from lender to lender. All of those can impact the overall cost of the loan significantly. All fees and additional expenses should be considered before locking in a loan. Remember, the interest rates and fees can add a significant amount, even hundreds of dollars per month onto your mortgage payment.

Experts indicate that mortgage rates are still very volatile and can change quickly, therefore, rates should be locked in as quickly as possible before the next spike.

Disclaimer: The rates quoted above are basically the average advertised by a particular lending company. No guarantee of taken from the lender’ aspect whether the borrower will qualify for the mortgage rates mentioned in the article. The lenders dole out interest depending upon various facets, some of which may be unique to the borrower. This website does not engage in the sale or promotion of financial products and makes no claims as to the accuracy of the quotation of interest rates.

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